One month to meltdown?

Almost half of all workers in the North East living on a financial knife edge

Key statistics

• 49pc of the North East's working population could not survive beyond one month on savings alone

• 24pc of people in the North East have either reduced the amount they have been saving over the past six months or stopped saving all together

• 12pc of the working population has stopped saving over the past six months and started dipping into savings to meet monthly outgoings

• 21pc of the North East's population does not save at all

• 7pc of the people in the North East are spending over 50pc of their salary on unsecured debt

Independent research commissioned by credit reference agency Callcredit has revealed that 49pc of the North East's working population could not survive for more than a month on their savings alone. Worryingly, the impact of the credit crunch means that 12pc of people in the region can no longer afford to save and have in fact started dipping into savings to meet their monthly outgoings.

The shock findings also reveal that 7pc of people are spending over 50pc of their salary on unsecured debt repayments.

Owen Roberts, head of Callcredit Check, comments

"These findings are a stark illustration of how the credit crunch is already affecting consumers in the North East and it's clear that the rising cost of everyday living is having an immediate impact on our ability to save. Many workers are at what could be described as a financial tipping point where just one unexpected unfortunate incident could have dire financial consequences.

"We all need to take an active role in dealing with our debts. The first step is to get a copy of your credit report for a clear view of everything you owe and then review your bank statement to see how much you're paying out each month.

"If people are concerned about their debt levels they should talk to their lender before things become unmanageable or speak to an independent organisation such as the Consumer Credit Counselling Service to work out the best way forward."

ENDS

Rank Area Percentage of people who could not survive beyond one month on savings alone
1 North East 49%
2 South West 48%
3 Wales 47%
4 North West 46%
5 East Midlands 42%
UK average 40%
6 Scotland 39%
7 South East 39%
8 Yorks and The Humber 39%
9 East of England 38%
10 West Midlands 35%
11 London 35%

Rank Area Percentage of people who have reduced the amount they save each month or have stopped saving altogether
1 South West 31%
2 Wales 30%
3 East Midlands 30%
4 North West 28%
5 Yorks and The Humber 28%
6 West Midlands 27%
UK average 25%
7 South East 25%
8 North East 24%
9 London 21%
10 Scotland 14%
11 East of England 13%

Rank Area Percentage of people who have stopped saving and started dipping into their savings over the past six months
1 North East 12%
2 East Midlands 12%
3 South East 12%
4 London 11%
UK average 10%
5 Scotland 10%
6 North West 9%
7 South West 9%
8 Yorks and The Humber 9%
9 East of England 8%
10 Wales 6%
11 West Midlands 5%

Rank Area Percentage of people who do not save
1 East of England 27%
2 North West 24%
3 Scotland 24%
4 Wales 22%
5 North East 21%
UK average 19%
6 East Midlands 19%
7 West Midlands 18%
8 South East 17%
9 South West 16%
10 Yorks and The Humber 16%
11 London 15%

Rank Area Percentage of people who spend over 50pc of their disposable income on unsecured debt repayment
1 Yorks and The Humber 8%
2 North East 7%
3 East of England 6%
UK average 5%
4 Wales 5%
5 Scotland 5%
6 South East 5%
7 London 5%
8 South West 4%
9 West Midlands 4%
10 North West 3%
11 East Midlands 2%

Research information
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,057 adults. Fieldwork was undertaken between 16th - 19th May 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

About Callcredit
• Callcredit (www.callcredit.co.uk) is the UK's most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.
• Callcredit Check provides consumers with online access to the details of their credit file at www.callcreditcheck.com
• Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry's needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.
• Callcredit is one of six core businesses that form the Skipton Information Group. The other five are:
• Database management company EuroDirect
• Market analysis firm GMAP Consulting
• Online payment service provider, Legatio
• Scorecard development and affordability assessment specialist DecisionMetrics
• Marketing services and database specialist, Broadsystem
• Following the publication of Sir James Crosby's report, Callcredit has joined forces with the other two UK credit reference agencies to offer expert advice for victims of ID fraud. This joined up approach will mean that victims can contact Callcredit who will then alert the other two agencies to the fraud on their behalf. Our ID fraud team will also work with victims to contact all lenders and ensure that fraudulent information is removed and the consumers' credit history is fully restored.